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Strategies & Market Trends : Currencies and the Global Capital Markets -- Ignore unavailable to you. Want to Upgrade?

To: Chip McVickar who wrote (1583)	5/19/1999 9:47:00 AM
From: Henry Volquardsen	Read Replies (1) \| Respond to of 3536

Not that simple. A strengthening dollar would only enhance the export led recoveries in Asia and perhaps Europe and potentially attract more money into real investments. It would take some time for a strong dollar to feed back into pressure on the emerging currencies. BTW it is also possible that further rises in long term interest rates could weaken the dollar. If the market gets it in their mind that there will be a series of interest rate hikes causing an extended period of bond weakness then we could see a weaker dollar. That however would likely stifle the recovering Asian economies and would be more quickly self corrected than the first scenario.